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Question - A homebuilder's advertising had the caption, "Inflation to Continue for Many Years." The ad explained that if one buys a home now for $297,000, and inflation continues at 7%, the home will be worth $819,400 in 15 years. Thus, by buying a new home now, one can realize a profit of $522,400 in 15 years. Do you find this logic persuasive? Explain.
Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
Why does increasing productivity index effect the total product and marginal cost When the productivity index is moved from 0% to 25% Total product increases and the marginal cost decreases.
How insurance benefits/hinders each stakeholder. How does the demand theory apply to the relationship between each stakeholder and the insurance industry?
A 7.50 percent coupon bond with 13 years left to maturity is priced to offer a 8.2 percent yield to maturity.
prepare a 2-3 page analysis by answering the questions below. be sure to cite your references using apa format.assume
Assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 2% a year. Now suppose that A increases by 6% in period t. This increase in productivity growth will cause:
What is meant by "A company should produce and sell any product as long as there is a market for it."
Explain the following statment: "A monopolist can control the price or the quantity sold, but cannot control both."
What problems did Nationalists see with the Articles of Confederation? How was Shay's Rebellion a manifestation of these problems? What were two major issues that divided delegates at the Constitutional Convention and how were they resolved?
Assume that the relationship between the growth of a fish population and the population size can be expressed as g = 2P – 0.1P, where g is the growth in tons and P is the size of the population (in thousands of tons). Given a price of $50 ton, the ma..
Many suppliers experience economies of scale as output expands, which implies that long-run average costs are falling. At very high levels of production, however, many firms are likely to experience diseconomies of scale.
Present discounted values (I): Compute the present discounted value of the following income streams. Assume the interest rate is 3%.
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